[Featured Stock] Taeyoung Construction Plummets 15.01% Following Workout Commencement

by Kim Daehyun

Published 12 Jan.2024 11:38(KST)

The stock price of Taeyoung Construction, whose workout (corporate financial restructuring) commencement has been confirmed, is weak on the 12th.

Taeyoung Construction, Yeongdeungpo-gu, Seoul. Photo by Yongjun Cho jun21@

As of 11:28 a.m. on that day, Taeyoung Construction was trading at 3,200 won, down 565 won (-15.01%) from the previous trading day. Until now, the workout had been a positive factor for the stock price, but with the confirmation of the workout commencement, that effect has disappeared, and concerns about increased uncertainty in the future seem to have also played a role.

Earlier, KDB Industrial Bank announced that as a result of receiving the resolution on the agenda of the 1st Financial Creditors' Meeting, which was submitted to financial creditors by midnight the previous day, the consent rate was 96.1%, and it was resolved to commence the workout. The creditors will conduct due diligence on Taeyoung Construction and then prepare a financial restructuring plan together with Taeyoung Construction. This plan will be finalized at the 2nd Creditors' Meeting on April 11.

With the start of the workout, the exercise of financial claims against Taeyoung Construction will be deferred for up to four months, during which Taeyoung Construction will prepare a plan to graduate from the workout with the creditors.